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Table 2: Up-Front Multi-Year Funding
1. Strategic outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.
2. Program activity: Clean Energy
3. Name of recipient: Green Municipal Fund (GMF)
Federation of Canadian Municipalities' (FCM) Green Municipal Fund (GMF) formerly known as the Green Municipal Enabling Fund (GMEF) and the Green Municipal Investment Fund (GMIF)
4. Start date: Budget 2000
5. End date: In perpetuity
6. Description: The intent of the GMF is to encourage investment in environmental municipal infrastructure. Specifically, the priorities of the fund are to have a positive impact on the health and the quality of life of Canadians by reducing greenhouse gas (GHG) emissions, improving local air, water and soil quality and promoting renewable energy by supporting environmental studies and projects within the municipal sector.
The GMF is equally co-funded by NRCan and Environment Canada (EC) who manage the fund at arms' length creating a strong partnership between the FCM and the Government of Canada. The FCM Board of Directors, formally designated as the decision-making body for the funds, is advised by a 15‑member council with five federal appointees. The Council plays a key role, supported by the FCM secretariat and the GMF Peer Review Committee.
Created in Budget 2000 with an endowment of $125M, the Green Municipal Funds were doubled in Budget 2002 with an additional $125M, consisting of the GMEF and the GMIF.
With Budget 2005, the GMEF and GMIF were merged into one fund known as the Green Municipal Fund (GMF), combining the $250M from the old GMF with the new $300M into a revolving fund. This fund supports grants, loans and loan guarantees and is consistent with the purpose and intent of the original agreements. $150 million dollars of this fund is to be used exclusively to provide loans for the clean‑up and redevelopment of brownfields.
The amount of GMF financing available to municipalities is directly related to the environmental, economic and social benefits of the projects undertaken.
GMF will no longer issues Requests for Proposals for capital projects. The calls for applications for 2009-2010 capital projects will be open, non-competitive, with no funding allocations per sector, and with an increase in the maximum loan amount from $2M to $4M.
| 7. Total Funding | 8. Prior Years' Funding | 9. Planned Funding 2009-10 |
10. Planned Funding 2010-11 |
11. Planned Funding 2011-12 |
|---|---|---|---|---|
| 275.0 | 275.0 | 0.0 | 0.0 | 0.0 |
[*] NRCan's share is $275M
12. Summary of annual plans of recipient: The FCM will issue the 2010-2011 Annual Statement of Plans and Objectives by January 30, 2009.
The FCM is expected to issue the 2008-2009 Annual Report by March 31, 2009. It will be posted on the FCM web site noted below.
13. Planned evaluation(s):
14. Planned audit(s):
FCM will provide an independent financial audit (including investment of unallocated funds, loans, grants and loan guarantees) by September 30, 2009.
FCM will provide and make public an independent review (compliance audit) by September 30, 2009.
FCM will provide and make public an independent performance audit (value-for-money) by September 30, 2009.
15. URL of recipient site: http://www.fcm.ca.
Table 2: Up-Front Multi-Year Funding
1. Strategic outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.
2. Program activity: Clean Energy
3. Name of recipient: Sustainable Development Technology Canada (SDTC) for the NextGen Biofuels Fund™
4. Start date: April 1, 2007
5. End date: Agreement ends September 30, 2027; last disbursement of funds to SDTC by March 31, 2015
6. Description: SDTC is managing the NextGen Biofuels Fund™, which will support up to 40% of eligible project costs to a maximum of $200M per project for the establishment of first-of-kind, large-scale demonstration next-generation renewable fuel production facilities to encourage the future sustainability and success of renewable fuels. Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as forest biomass, fast-growing grasses, and agricultural residues, and are produced with non-conventional conversion technologies.
Since next-generation technologies are capital equipment intensive, they constitute a greater debt financing risk. The support provided by the NextGen Biofuels Fund™ will encourage the retention and growth of technology expertise and innovation capacity for next-generation renewable fuels production in Canada.
* The funding is divided equally between NRCan and Environment Canada. The $200,000,000 statutory funds were approved in Bill C‑52, an Act to implement certain provisions of the Budget tabled in Parliament on March 19, 2007. This funding will be requested as required. The remaining funds are to be appropriated by Parliament over the period of 2008/09 to 2014/15.
| 7. Total Funding | 8. Prior Years' Funding | 9. Planned Funding 2009-10 |
10. Planned Funding 2010-11 |
11. Planned Funding 2011-12 |
|---|---|---|---|---|
| *500.0 (Statutory funds: 200.0 Appropriation: 300.0) |
Statutory funds: 20.7 Appropriation: 12.5 |
Statutory funds: 20.0 Appropriation: 0.0 |
Statutory funds: 20.0 Appropriation: 37.5 |
Statutory funds: 20.0 Appropriation: 25.0 |
12. Summary of annual plans of recipient: SDTC Corporate Plan for 2009 released October 2008. Executive summary posted on website below.
13. Planned evaluations: Three interim evaluations will be performed by an independent third party (Nov 30, 2012; Nov 30, 2017; and Nov 30, 2022) and a final evaluation will be performed by Sept 30, 2027. Canada may choose to evaluate the Foundation at any time over the life of the agreement to determine whether it is fulfilling its objectives.
14. Planned audits: An auditor appointed by the Foundation will perform an annual financial audit. Canada may undertake a compliance audit at any time over the life of the agreement. Canada may also undertake at least once every five years a value-for-money audit (performance).
15. URL of recipient site: www.sdtc.ca.
Table 2: Multi-Year Funding
1. Strategic outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.
2. Program activity: 2.1 Clean Energy
3. Name of recipient: Sustainable Development Technology Canada (SDTC)
4. Start date: March 26, 2001
5. End date: June 30, 2015 (Tech Fund) and 2027 (NextGen Biofuels Fund)
6. Description: SDTC is an arm's-length foundation designed to provide funding for the development and demonstration of sustainable development technologies in order to bring them to a state of market readiness. SDTC also works directly with technology developers to strengthen their entrepreneurial skills and business cases. The Foundation works with key players including industry, academia, nongovernmental organizations (NGOs), the financial community and all levels of government.
Since 2001, SDTC's mandate has been expanded twice, and the foundation now manages two separate funds. Of the $550M allotted for the foundation, $350M is designated for clean air and climate change projects, and $200M is designated for clean water and soil. In 2007, a new $500M NextGen Biofuels Fund was established to provide capital support for next-generation renewable fuel facilities.
Both NRCan and Environment Canada (NRCan is the lead department) are responsible for oversight and monitoring of the operations of SDTC and for compliance with the terms and conditions of the two funding agreements and the founding legislation.
As of October 2008, SDTC has processed nearly 1500 applications and approved 144 projects. The approved projects have a total eligible project value of $1.14 billion, of which SDTC has agreed to provide $342M.
| 7. Total Funding[*] | 8. Prior Years' Funding | 9. Planned Funding 2009-10 |
10. Planned Funding 2010-11 |
11. Planned Funding 2011-12 |
|
|---|---|---|---|---|---|
| Total Contributions (SD Tech) | 550.0 | 342.0 allocated |
100.0 allocation |
100.0 allocation |
Fully allocated |
| Total Contributions (NGBF) | 500.0 | None allocated | 200.0-250.0 allocation |
N/A | N/A |
[*] $1.05 billion (of which NRCan's share is $525 million)
12. Summary of annual plans of recipient: SDTC publishes a corporate plan in November of each year that describes plans for the current year and provides a forecast for the following year. It includes a disbursement plan, planned administration expenditures, objectives and proposed actions, an investment update, operating strategy, and performance expectations. The SDTC Annual Report and a summary of the corporate plan are tabled in the House of Commons by the Minister of Natural Resources Canada (NRCan), usually in July-August.
SDTC holds two rounds of funding each year (January and August), initially requesting Statements of Interest (SOI) from applicants. Contract announcements are made about nine months after the acceptance of SOIs.
Funding allocations in 2009 and 2010 are expected to total around $200M. Since SDTC allocates funding based on the merit of applications it does not have strict allocation targets. The anticipated 2008 disbursements are $43M (compared to $28M in 2007) for a total disbursement to date of $128M. Annual project disbursement payments are projected to be approximately $60M and $85M in 2009 and 2010 respectively.
SD Tech Fund ($550 M)
Funding Agreement Three, between the Government of Canada and the Foundation, dated March 31, 2005 for $550 million (SD Tech Fund™), provides the terms and conditions for the Foundation on providing funding for development and demonstration of technologies focusing on climate change, clean air, water and soil. According to SDTC, the projects it has funded since 2002 have an estimated potential to reduce annual greenhouse gas emissions by more than 13.5 megatonnes by the end of 2010.
NextGen Biofuels Fund (NGBF – $500 M)
Through Budget 2007, SDTC was given a new mandate to invest with the private sector in establishing large-scale facilities for the production of next-generation renewable fuels.
The fund will help Canada meet its Renewable Fuels Strategy goals. The purpose of the fund is to encourage retention and growth of technology expertise and innovation capacity for cellulosic ethanol and biodiesel production in Canada. The NextGen Biofuels Fund is now open for applications. Applicants are able to submit applications at any time during the year.
13. Planned evaluations: The SD Tech Fund has evaluations planned for June 30, 2009 and June 30, 2015. For the NextGen Biofuels Fund three interim evaluations will be performed by an independent 3rd party (Nov 30, 2012, Nov 30, 2017 and Nov 30, 2022); a final evaluation by Sept 30, 2027.
14. Planned audits: For the SD Tech Fund, "Value-for-Money (Performance) Audit", funded by the Federal Government, is due March 31, 2010, as per Funding Agreement Three. This type of Audit is the first one under the Funding Agreement and is due every 5 years.
For the NGBF, "Value-for-Money (Performance) Audit", funded by the Federal Government, is due September 4, 2012, as per the Funding Agreement. This type of Audit is the first one under the Funding Agreement and is due every 5 years.
15. URL of recipient site: www.sdtc.ca.